This article studies the steady-state effects of income taxation on output by incorporating endogenous time preference into the neoclassical growth framework. It is found that a rise in the income tax may lead to a boom in economic activities in the long run. This result contrasts with a general...

This article applies the central feature of imperfect competition in the goods market to examine the validity of the Peacock and Shaw assertion that an increase in tax evasion will definitely lead to a higher domestic income and a lower level of total tax collections. The authors provide, for...

The conclusion of Peacock and Shaw's 1982 article "Tax Evasion and Tax Revenue Loss," which has received wide attention in the literature, indicates that a rise in tax evasion will definitely lead to lower tax collections. The present article makes a new attempt to reexamine the Peacock and Shaw...

This article investigates the effect of tax reform from the viewpoint of regime switching and finds that, following a tax-reform announcement with constant government spending, the key factor determining the adjustment patterns of consumption and capital is the relative extent of the...